Rengo Co., Ltd. (Head Office: Kita-ku, Osaka; Chairman, President & CEO: Kiyoshi Otsubo) announces that it resolved today to subscribe for the issuance of 2,150,000 new shares by third party allotment in Toppan Containers Co., Ltd. (Head Office: 1-5-1 Taito, Taito-ku, Tokyo; Representative: Takayuki Yamamoto), a wholly-owned subsidiary of Toppan Printing Co., Ltd. (Head Office: 1-5-1 Taito, Taito-ku, Tokyo; Representative: Shingo Kaneko), and to acquire 340,000 common shares from Toppan Printing (“the Acquisition of Shares”) to make Toppan Containers a subsidiary of Rengo, and it has concluded agreements on the subscription for shares and the share transfer with Toppan Containers and Toppan Printing, respectively.

The Acquisition of Shares and the share transfer are subject to anti-monopoly law-related approval by the Fair Trade Commission of Japan and the Ministry of Commerce of the People's Republic of China.

The Rengo Group, as a “General Packaging Industry,” a comprehensive packaging provider that actively makes proposals which are capable of fulfilling all of the packaging needs of various industries, is making every effort to expand its business operations and improve its earning capacity through strengthening of its marketing ability by means of innovative packaging, actively making capital investments and M&As, and reorganization of businesses in order to further develop its hexagonal business structure with its six core business fields (Paperboard, Corrugated Packaging, Folding Cartons, Flexible Packaging, Heavy Duty Packaging and Overseas Operations).

Toppan Containers, the shares in which will be acquired by Rengo, has three corrugated board plants in Japan (Kawaguchi-shi in Saitama Prefecture, Sano-shi in Tochigi Prefecture and Ishinomaki-shi in Miyagi Prefecture) and is manufacturing corrugated packaging, orders for which are mostly received by Toppan Printing from its customers. Toppan Containers’ corrugated production at the three factories combined was a monthly average of approximately 11.4 million square meters in the fiscal year ended March 31, 2017.

A pressing task of the Rengo Group is to expand its supply capacity of corrugated packaging in the Kanto region where demand for corrugated packaging is growing significantly. Rengo will consider actively making capital investments in Toppan Containers’ plants, and will organize systems to more fully satisfy customers’ future needs by enhancing the production capacity of corrugated packaging and further improving quality.

Even after Toppan Containers has become a subsidiary of Rengo, it will continue the employment all of its employees and will be responsible for distribution channels and supply relating to corrugated packaging with Toppan Printing. Also, Rengo and Toppan Printing will engage in improving Toppan Containers’ performance by cooperatively assisting it with the purchasing of raw materials, production and logistics (excluding sales).

After the acquisition of shares, the trade name, etc. of Toppan Containers will be changed as shown below.

The impact of the Acquisition of Shares on Rengo's consolidated financial results for the fiscal year ending March 31, 2019 is being examined, and will be announced as soon as it is finalized.